Now that the debt ceiling debate is over, the U.S. deserves to keep its AAA credit rating and it would be shocking if it was downgraded, Roger Altman wrote in a opinion piece for the Financial Times.
Altman, who is the founder of the private equity firm Evercore Partners and also the former deputy secretary of the Treasury during the Clinton administration, says there is little basis for a downgrade by the S&P, which has threatened it.
Here are his points:
1. After a bill to raise the debt ceiling passed, the risk of default, which he says was “minuscule” to begin with, has been removed.
2. America is NOT the weakest of the other 17 nations with a AAA rating.
3. Even though the ratings agencies criticised the ugly debt ceiling negotiations, the budget process is often messy he said pointing to the Clinton deficit reduction program from 1993 that passed the senate by a tie-breaking vote from the vice-president.